Establishment of New LSI Company Fujitsu … price Strengths & Achievements Growth strategy for...
Transcript of Establishment of New LSI Company Fujitsu … price Strengths & Achievements Growth strategy for...
Copyright 2008 FUJITSU LIMITED
Establishment of New LSI CompanyFujitsu Microelectronics Limited
Establishment of New LSI CompanyFujitsu Microelectronics Limited
February 12th, 2008Toshihiko Ono
Corporate Senior Executive Vice President & Representative Director
Fujitsu Limited
Copyright 2008 FUJITSU LIMITED
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Product/LSI Commoditization
Globalization of Customers
Polarization to Fabless/Foundry
Unpredictable Product Lifecycles
Market ChangesMarket ChangesMarket Changes
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Emphasis on Software
Shift to Platforms
Global Supplier
Response to Changes in Value ChainResponse to Changes in Value Response to Changes in Value ChainChain
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SoftwareSoftware
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Approach Up Until Now~Synergy in Electronic Devices Business ~
Approach Up Until NowApproach Up Until Now~~Synergy in Electronic Devices BusinessSynergy in Electronic Devices Business ~~
Small
Area of Focus
High
Low
Unit VolumeUnit Volume
Equipment
Units
Boards
Modules
Packages MCP / SiP
LSILSI
Syst
em L
evel
Fujitsu Group companies offer total solutionsFujitsu Group companies offer total solutions
Large
Healthcare
System System ConnectorsConnectors
Wireless Communications
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Focus on ASSPs from 4 years ago
<Applications of Focus>Imaging Wireless Security
Shift of Value Upstream & ASSPsShift of Value Upstream & Shift of Value Upstream & ASSPsASSPs
• Concurrent Software & Hardware Development Capability• Software & Hardware “First-Shot Full Operation”• Extensive IP Cultivated by Fujitsu / Partners
Achievements
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Fujitsu Limited
Customer(Partner)
New Fujitsu Group Synergies via PartnersNew Fujitsu Group Synergies via PartnersNew Fujitsu Group Synergies via Partners
Fujitsu Microelectronics Limited
Example : Mobile DTV (1 seg.) Module for Mobile Phone TV Module for PC
Portfolio & ProfitabilityPortfolio & ProfitabilityPortfolio & ProfitabilityProfitability
Analog
Microcontrollers
ASIC
COT
ASSP
FY2007 FY2009
-← Profit Margin →+ -← Profit Margin →+
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Incur Development Expenses
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Products
Solution Proposal
Globalization
Areas to StrengthenAreas to StrengthenAreas to Strengthen
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Purpose of the Company SplitPurpose of the Company SplitPurpose of the Company Split
Rapid and Timely Decision-Making
Increase Business Independence
Adopt New Management CycleOptimized for LSI Business
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ProductsWorldwidePlatforms
Embedded Software
Sales / Solution StrengthSales / Solution StrengthSales / Solution Strength
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Applications of FocusApplications of FocusApplications of Focus
•WiMAX•Super 3G•Milbeaut•OFDM•Power Management IC
•Power Management IC•OFDM•WiMAX
•Milbeaut•H.264•MPEG•Microcontrollers•OFDM•RFCMOS
•Microcontrollers•Graphics•IDB1394•SmartCodec•FlexRay
Digital AV
Mobile Phone
Automotive
PC
Security•FRAM•IPv6•IPSec
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Company Name: Fujitsu Microelectronics Limited
Business Description: Design, development, manufacturing, and sales
of LSI products
Head Office Location: Shinjuku Daiichi Seimei Bldg.,
2-7-1 Nishi-Shinjuku, Shinjuku-Ku, Tokyo, Japan
President: Toshihiko Ono
Capital: 60,000 Million Yen
Officers: Directors: Shigeru Fujii, Koichi Ishizaka, Haruyoshi Yagi,
Joji Murakami
Auditors: Masamichi Ogura, Toshimasa Wada, Yoshihiro Ando
New Company OverviewNew Company OverviewNew Company Overview
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Regional Sales FirmsOverseas Design
Firms
Regional Sales FirmsOverseas Design
FirmsFujitsu Electronics Inc.Fujitsu Electronics Inc.
Customers
New Company StructureNew Company StructureNew Company Structure
LSI Manufacturing SubsidiariesFujitsu Integrated Microtechnology Ltd. Fujitsu Semiconductor Technology Inc.
Fujitsu Facilities Engineering Ltd. e-Shuttle Inc.
LSI Manufacturing SubsidiariesFujitsu Integrated Microtechnology Ltd. Fujitsu Semiconductor Technology Inc.
Fujitsu Facilities Engineering Ltd. e-Shuttle Inc.
*Shinko Electric Industries Co., Ltd., Fujitsu Component Limited and FujitsuMedia Devices Limited will remain Fujitsu Limited subsidiaries.
Fujitsu Microelectronics
Limited
Fujitsu Microelectronics
Limited
LSI Design Subsidiaries
Fujitsu VLSI LimitedFujitsu LSI Technology Ltd.Fujitsu LSI Solutions Ltd.Fujitsu Microelectronics
Solutions Ltd.
LSI Design Subsidiaries
Fujitsu VLSI LimitedFujitsu LSI Technology Ltd.Fujitsu LSI Solutions Ltd.Fujitsu Microelectronics
Solutions Ltd.
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Camera Engine MilbeautTM
Tuner - OFDMVideo Processing LSI H.264 / SmartCODECWiMAX LSI
MCU Automotive Network,“FF Value” Non-Volatile MCU
Power Management IcsEfficiency & Accuracy, Miniaturization Capability
From ASSP To Embedded System Solution
Reinforcement of Product lineReinforcement of Product lineReinforcement of Product line
Develop Our Competitive IP Based ProductsTowards Asian Market
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Camera Engine MilbeautTMCamera Engine MilbeautTM
Strengths & AchievementsFor D-SLR, Worldwide No.1 Share in 2007(50%)
Growth strategy for future
High image quality: chroma noise reduction, high resolution
High-performance: continuous shoot,face detection, anti-shaking
Low power consumption: 90nm technology
Digital Still Camera (DSC) Market
Camera-phone market
(Thousand Units)
(Thousand Units)
EM Data Service
DSC Mobile Phone
Techno Systems Research Co.,Ltd
Fujitsu Microelectronics
ODM/EMS Module makers
Compact Camera Camera-phone
Strengthen SCM & expand business to set makers, ODM/EMS/module makers.
Target
Source: Fujitsu
Source: Fujitsu
Sensor maker
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Tuner – Demodulator LSIsTuner Tuner –– Demodulator Demodulator LSIsLSIs
Mobile Terrestrial DTV Market
Expand new spec, Full seg (13 seg) OFDM, into PCs, TV/STB, automotive.
Cooperate with software vendors for Brazil market, which uses same ISDB-T standard as Japan (Brazil’s analog TV stops in 2016)
・Terrestrial mobile DTV(1 seg/3 seg) ASSP (OFDM) Japan share No.1 (60%)
・Product development based on tie-ups with set makers, carriers, broadcasters.
Low power consumption1-chip, small chip sizeCompetitive price
Strengths & Achievements
Growth strategy for future
Mobile Phone
PCDTV/STBAutomotive
FujitsuMicroelectronics
Broadcast Spec Bodies
Broadcast service vendors
Broadcast set makersSpeed-up
Partnerships
05,000
10,00015,00020,000
25,00030,000
35,00040,000
2006 2007 2008 2009 2010 2011010
203040
5060
70
80
ISDB-T (1-seg) Mobile TV Handset Forecast Units
Fujitsu Share Forecast(%)
(Thousand Units) Share(%)
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H.264 Video Processing LSIsH.264 Video Processing H.264 Video Processing LSIsLSIs
Drive H.264 products into Europe STB/iDTV& China pay TV STBs.
・Worldwide No.1 share in H.264 Codec ASSP for HD Camcorders
・ First sample of Full HD H.264 Codec 1-chip LSI in industry! (Sept. 2007)
・SmartCODEC LSI on IDB-1394 for Automotive rear seat entertainment (Nov. 2007)
Realtime H.264HD Compression / Decompression
High image quality
DVC Automotive
Strengths & Achievements
Growth strategy for future
DTV/STB
DTV/STB Market
Digital Video Camera (DVC) Market
(iSuppli Dec. 2007)
FujitsuMicroelectronics Set Makers
Speed-upPartnerships
ODM/EMS
Module Makers
Operators
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WiMAX LSIsWiMAXWiMAX LSIsLSIs
Mobile WiMAX Device Market
With III, provide application platform to Taiwan ODMs for speedy market entryFY2008:Mobile WiMAX devices(PDA etc)FY2009: Expand to mobile phones
0
5
10
15
20
25
30
35
40
45
50
2007 2008 2009 2010
For mobile devices
For PCs
Source: Fujitsu
(Worldwide Units M)Mobile device
volume ramp-up
Initial ramp with PCs
・Mobile WiMAX baseband LSI (May 2007)・Joint venture with Taiwan III for Taiwan
Solution AE Center (March 2008)・ Mobile WiMAX RF module (Feb. 2008)
Low power consumptionTyp 240mW(@18.6Mbps data receive)Sleep Mode below 10mW
Mobile Phone PC
Strengths & Achievements
Growth strategy for future
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Microcontrollers Microcontrollers Microcontrollers MCU Market
Strengthen MCUs for Asian market- Focus resources to design center in Changdu,
China & expand product line by 5 times!-With Full Turnkey Solution expand
ODM/EMS design wins!- Strengthen support organization and sales
channels
・Automotive network MCU share WW No.4In 16bit CAN MCU No.2
FF ValueFlash: Robust write, erase, store
Read/write 100,000 times, 20 year storageFRAM: Low power & seamless memory space
Read/write more than 10 billion times
Dec. 2007 iSuppli
Automotive MCU CAGR 6.5%
(M$)
MCU Market by region
Asia MCU CAGR 8.1%
(M$)
Automotive
Digital AVHome
Appliances~Asia Focus~
Strengths & Achievements
Growth strategy for future
MCU Market by application
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Power Management ICsPower Management ICsPower Management ICsStandard Linear Market
Enhance design capability in Asia(Targeting Mobile PC and portable equipment)
- Built-up Design center in Changdu (China) for local design and expand product line by 5 times.
Early entry to ODM in Taiwan in System PMfor UMPC and mobile.
・DC/DC Convertor ICsNo.1 Share in Japan, No.7 in WW(CY2006)
・1-chip Solution for LPIA VR in Ultra Mobile PCs
Voltage accuracy ±0.5%Efficiency 96% (maximum)Miniaturization capability
Standard DC/DC Converters
Strengths & Achievements
Growth strategy for future
Mobile phone
PCDigital AV
The growth The growth rate in Asia rate in Asia
30%30% /Year /Year
North North America,EU,JapanAmerica,EU,Japan
2005 20102005 2010
North North America,EU,JapanAmerica,EU,Japan
$10,000M
$3,000M
$1,000M
Asia growth 30%p.a.
PM Market CAGR 10%
Market size & growth of PMIC by region
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Business PlanBusiness PlanBusiness Plan
(100 Million Yen)
Fujitsu Microelectronics Consolidated Net Sales Plan
Others
ASIC/COT
ASSP/General Purpose
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Fab Capacity Plan for Logic LSIFabFab Capacity Plan for Logic LSICapacity Plan for Logic LSIPrevious (announced in Apr. 2007) Current Plan
(K wafers ) (K wafers )
300mm Fabs Manufacturing Capacity Increase PlanMie Fab 1: With increase in productivity, increased capacity with no
investment (15Kwpm->16Kwpm @start FY2008) Mie Fab 2: Change plans depending on customer demand
(7Kwpm->5Kwpm @end FY2008)
200mm equivalent2007 20072008 2008 2009
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October 2007 Established Fujitsu Electronics Inc. ⇒ Consolidation & strengthening of software development
and AE team
Organization for Asian Market Growth
Global Development / Manufacturing
Create structure to strengthen synergy with Fujitsu’s System Group
Organization to Strengthen ProductsOrganization to Strengthen ProductsOrganization to Strengthen Products
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AbbreviationsAbbreviationsAbbreviations・ASSP : Application Specific Standard Product・MCP : Multi Chip Package・SiP : System in Package・COT : Customer-Owned Tooling・ASIC : Application Specific Integrated Circuit・OFDM : Orthogonal Frequency Division Multiplexing・GDC : Graphic Display Controller・DSC : Digital Still Camera・ODM : Original Design Manufacturer・EMS : Electronic Manufacturing Services・ISDB-T : Integrated Services Digital Broadcasting for Terrestrial・DVC : Digital Video Camcorder・DTV : Digital TV・STB : Set Top Box・iDTV : integrated Digital TV・UMPC : Ultra Mobile PC・PMIC : Power Management IC
Copyright 2008 FUJITSU LIMITED
Cautionary StatementThese presentation materials and other information on our meeting may contain forward-looking statements that are based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Words such as “anticipates,” “believes,” “expects,” “estimates,” “intends,” “plans,” “projects,” and similar expressions which indicate future events and trends identify forward-looking statements.Actual results may differ materially from those projected or implied in the forward-looking statements due to, without limitation, the following factors:
•uncertainty as to Fujitsu’s access to, or protection for, certain intellectual property rights;
•general economic and market conditions in the major geographic markets for Fujitsu’s services and products, which are the United States, EU, Japan and elsewhere in Asia, particularly as such conditions may effect customer spending;•rapid technological change, fluctuations in customer demand and intensifying price competition in the IT, telecommunications, and microelectronics markets in which Fujitsu competes;•Fujitsu’s ability to dispose of non-core businesses and related assets through strategic alliances and sales on commercially reasonable terms, and the effect of realization of losses which may result from such transactions;
•uncertainty as to the performance of Fujitsu’s strategic business partners;•declines in the market prices of Japanese and foreign equity securities held by Fujitsu which could cause Fujitsu to recognize significant losses in the value of its holdings and require Fujitsu to make significant additional contributions to its pension funds in order to make up shortfalls in minimum reserve requirements resulting from such declines;•poor operating results, inability to access financing on commercially reasonable terms, insolvency or bankruptcy of Fujitsu’s customers, any of which factors could adversely affect or preclude these customers’ ability to timely pay accounts receivables owed to Fujitsu; and•fluctuations in rates of exchange for the yen and other currencies in which Fujitsu makes significant sales or in which Fujitsu’s assets and liabilities are denominated, particularly between the yen and the British pound and U.S. dollar, respectively.